$1trillion+ in tax breaks now subject to Executive Branch review

Bipartisan legislation signed by President Obama last Tuesday will significantly change the way the government monitors and reports on its own performance. One of the most important reforms contained in the new law is a requirement that targeted tax breaks — or “tax expenditures” — finally be analyzed based on their success in contributing toward the government’s intended goals. Since tax expenditures easily exceed $1 trillion per year, this is an enormous change.

Citizens for Tax Justice touches on the history behind tax expenditure performance review, the differences between this new law and those in effect in the states, and potential issues with implementation in this short article: http://www.ctj.org/taxjusticedigest/archive/2011/01/new_law_requires_tax_breaks_to.php